Peak in shale's capital efficie could help to bring investors back

摘要

OUTLOOKS FOR THE DRILLING industry have historically hinged on the rise and fall of oil prices. Today, while oil prices still matter, they now wield much less power in terms of their ability to put rigs back to work. "What investors really want is for incremental cash flow to not go to the drill bit," said Chase Mulvehill, Senior Analyst Oilfield Services for Bank of America Merrill Lynch Research. "They want it to come back to investors. So you will not see a lot of rigs being added, even with a higher oil price."